Templeton Foreign Fund Update
Effective October 1, 2007, Jeffrey Everett left Templeton
Global Advisors to pursue new opportunities. Mr. Everett’s responsibilities
included management of the Templeton Foreign fund. Portfolio management
responsibilities were assumed by Tucker Scott, who has been with Templeton since
1996. The fund’s recent performance has been negatively impacted by unfavorable
stock selection in emerging markets, which has caused the fund to under perform
its benchmark and peer group.
The Program’s investment consultant expects the fund to reduce cash and emerging
market holdings while increasing the number of analysts contributing research to
investment decisions While poor performance gives some cause for
concern, our consultant has met with Templeton management and found their
management team to be capable and insightful.
There is no change in the availability of the fund as a Program investment
option at this time, but notification will be sent if there is a status change
in the future. However, because of the under performance and change in
management, the fund is being closely monitored by our Board and its investment
consultant.